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Judgment
PER NAVEEN CHANDRA, AM :-
This appeal by the Revenue is directed against the order of the ld. CIT(A) dated 12.03.2025 pertaining to A.Y 2015-16.
In the instant case, the assessee had deducted TDS but there was a delay in depositing the TDS as well as issuing certificate of deduction. Therefore, the Assessing Officer has levied penalty u/s 272A(2)(g) of the Act on the assessee.
None appeared on behalf of the assessee. We heard the ld. DR at length who assisted us with the facts of the case and relied on the orders of the Assessing Officer. Case records carefully perused and considered.
On a perusal of the relevant material on record, we find that the assessee has deducted the TDS and the only transgression committed by the assessee was the delay in depositing the TDS and certificate of deduction. We find that the ld. CIT(A) has discussed this issue in detail and came to the conclusion which reads as under:
“4.1.10Regarding the delay, the appellant explained that it had a reasonable cause in late issue of TDS certificates as the utility for online filing of TDS returns and generation of Form-16/16A by giving particulars of Tax Deducted at Source of the deductees can be generated only after payment of Tax Deducted at Source to the Central treasury.
4.1.11In the present case the appellant deposited late TDS for which it had obtained compounding order along with extension of time for payment of compounding charges. The appellant paid compounding charges of Rs. 84,39,091/- and Additional Compounding Charges of Rs. 5,06,345/- for the extended period of deposit of compounding charges. It is pertinent to refer to the Compounding Order wherein it was mentioned that the appellant company had paid Additional Compounding charges of Rs. 5,06,345/- for the delay in payment of TDS for which compounding had been granted. The appellant had not only been subjected to payment of interest apart from TDS compounding charges and then penalty under section 272A(2)(g) which is not equitable in the facts and circumstances of the case. The appellant late deposited TDS of Rs.1,46,83,523/- and paid interest on TDS of Rs. 35,16,288/-and compounding charges of Rs. 66,56,694/-. In total, the appellant paid a sum of Rs. 1,01,72,982/- over and above the liability of Tax Deducted at Source.
4.1.12The appellant had also furnished a chart giving TDS return wise and quarter wise dates of filing of TDS Returns and date of issue of TDS certificates along with number of days of delay from the date of due date of issue of TDS certificates computed from the date of filing of TDS returns reproduced below:-
Form TDS Return filing date Due date for issuance of TDS Certificates (Within 15 Days of Filing Return for Delay in Issuance of TDS Certificates Delay in Issuance of TDS Certificates computed from date of filing of TDS Returns TDS 26Q Q1 04.05.2015 19.05.2015 29.05.2015 10 days 26Q Q2 06.05.2015 21.05.2015 29.05.2015 10 days 26Q Q3 23.05.2015 07.06.2015 02.06.2015 No delay 26Q Q4 24.06.2015 09.07.2015 30.06.2015 No delay 26Q Q1 11.04.2015 31.05.2015 22.06.2015 10 days 4.1.13Looking at the fact that the late issue of TDS certificates is a technical breach which after the appellant had paid compounding charges for late deposit of TDS. Therefore, the penalty levied u/s 272A(2)(g), restricted to Rs. 4,71,217/- as per computation of penalty on the basis of delay computed from the date of filing of TDS returns. Accordingly, Ground Nos. 1 to 6 of appeal are partly allowed.”
After perusing the order of the ld. CIT(A), we find that he has correctly invoked the provisions of section 273B. We are inclined to agree with the CIT(A) that the assessee had reasonable cause for the said failure and hence we do not find any reason to interfere with the same. We are therefore, of the considered view that in the factual matrix of the instant case, penalty u/s 272A(2)(g) is not justified. Accordingly, the appeal of the Revenue stands dismissed.
In the result, appeal of Revenue in ITA No. 4164/DEL/2025 is dismissed.